maandag 18 februari 2008

Collecting societies show the way of generic money making to big record firms


Hi  there everyone,  
I've returned from Cannes and i feel....grrreat! everyones talking about the end of the tunnel, we 've seen the light at the end and it is shining bright!
In fact, they say The future of music is so bright, I think I need shades ;-)--->

Seriously,  looking at the amount of new ways to get music to the people, one would forget that this business is in quite a spot, for the most important thing of all is missing, the food, the fat, the dough or to put it plainly, the money.

The Industry has been giving this quite a thought,  and nowadays almost weekly a new thriving business model sees the daylight:  Sellaband, Subscription fees and eat as much as you can , DRM free shops, and lately more and more free catalogues for ads..
It's this last system that intrigues me most, and is pushing for the mainstream to become the dominant system .

What is the idea, well, for instance let's say Universal lets you download everything from it's catalogue for free, the only thing  you as a consumer must do is watch a little commercial , and zap , bob's your uncle, the music is yours ! 

Sounds phoney? 

Well as a matter of fact it may be the future.
The idea being that the commercial pays for the download, and so the money is in the basket and pays for the rights or the artist and the consumer gets the song for free. 

Everybody happy .... time for a nap...

But before you doze off , there is this little snag i would like to address you about...
Apparently the big shots from the record industry have been doing some crucial learning from someone else in the industry: the collecting societies!

For what is happening here is the transition from  selling an artist to getting money for a catalogue, or to say it in a more fashionable way, the transition of personalized to generic collection of money for music.
This is something the collecting societies have been doing with ever increasing succes the last couple of years when they started to collect the so called Levy tax on private copying on all systems with capacity of making copies: hard disks and flash memory in  computers, iPods and even cell phones. 

These levies have been collected but there is no way in knowing who that money should go to , for there isn't a system in use to know ho is actually  being copied.
Result: Billions upon billions have been collected , and not been redistributed.

What's all this got to do with the comercial i hear you say..
Lets get back to the new way of selling music the companies have figured out, you've got a catalogue of  hundreds of  thousands of songs , and you've got a couple of big firms wanting to pay for all the people ready to download them.

Is there a system gonna be in place to track down who sees what , and who gets what from the big amount?

Or will the companies , like the collecting societies, forget to implement this technological system, and be left holding a huge amount of faceless money , that only the artist with the management and lawyers could somehow claim a share from?

If they have learned anything from the collecting societies, it's bound to be the latter, 

By the way..
Didn't they just all decide to do away with DRM once and for good?

Get back to you later!

donderdag 31 januari 2008

The future of music prt 1 MIDEM

Traditionally ,  

The end of January spawns a lot of new years resolutions when it comes to music industry , the main reason being that - apart from the fact that the Rock standard one-month new year hangover from dope and drink  is starting to wear off - the month of Januari climaxes with the MIDEM anual music industry convention.
Always wondered what goes on at such a convention,  especially when the whole music industry is collapsing under its own non- vision and subsequently non-policy.

I was there!
hooray for the chosen ones!

This year it's all "The Music Industry 2.0" that is the buzz word..
Music Industry, the next frontier as to speak ...

and what a farce  it was

Everyone is trying to sell content at the highest bidder
Everyone is abandoning DRM's for that's really bad or so someone has decreed
Everyone is in the proces of making "exclusive deals" for "monetising" content, but at the end of the day no-one really has anything to prove it .
The Qtrax story was  exemplary to the feeling of the whole charade..
 - get the content and sell it before anyone else can - only to see that at the end of the day they didn't have the content.
You could hype up anything in this business and i guess they tried the same tactic and failed

But apart from that  one detail thing that was largely overseen by all players there ...
In all the discussions on content, music , sales  digitalising and monetizing and all the crap, not once did i hear a word about the effects these decisions are having on the new generation of artists,  what do they want , how do they see it and where is the money for them in all these new and brilliant business models?
Apparently the future of the music industry lies in the 'monetization' of the past content, The new acts are not spoken about.
If your a new and unknown artists, things are looking rough on the money side..
Sure you can use lots of new sites and internet tools to get your stuff out there, but who's gonna find you, and please, don't think that  The Artics and Lilly Allens got there without a massive promotional budget once they got rolling.
No , the real money lies in the reselling and promoting the artists that have already built their reputation, the trees that are already growing fruit .

get back to you later